1.   The National Credit Act No. 34 of 2005 (“the Act”), finally came into operation on 1 June 2007.

2.   The Act provides for a debt relief mechanism whereby an over-indebted person, or couple if married in community of property, might apply for debt-review whereby your debt repayment obligations are reduced to affordable levels.

3.   You are over-indebted if you, after providing for the monthly living expenses and maintenance requirements of yourself and your dependants, are unable to meet your commitments to your creditors.

4.   The aim and purpose of the Act, is therefore to help you to lead a normal economic life without being pressurised by creditors for payments you can no longer afford under the circumstances you find yourself into presently.

5.   By applying for debt review, you can prevent your assets, including your home, motor vehicle and furniture being attached by unsympathetic creditors. What’s more, creditors in terms of the provisions of the Act are obligated to participate in the debt review process and cannot avoid it.

6.   Repayments on your bond and motor vehicle, if applicable, might also be reduced to affordable levels.

7.   Once your debt obligations to your creditors have been re-arranged, you will financially be liberated and therefore be able to honour your payment obligations to creditors with reduced instalments which you can afford.

8.  This is not administration